The C64 was an awesome gaming device back in the days, especially considered the limited hardware capabilities. Manomio went ahead and brought the C64 back in the form of an emulator for the iPhone. C64iPhone is completely licensed by Commodore, but got rejected by the AppStore because the emulator breaks the iPhone SDK API, running executable code. It is expected that a new version will be released, only running the virtual emulator without BASIC code.
Until then, all we got is the Youtube preview video of awesome C64 classic such as Bruce Lee and International Karate. When finally accepted, the C64 will come with 5 games included: Dragons Den, Le Mans, Jupiter Lander, Arctic Shipwreck and Jack Attack and more will be available.